Considering shareholders’ decision to freeze all activities of KVV Liepājas metalurgs, the company will soon carry out a personnel audit soon in order to acquire a full picture as to the number of employees that will be necessary to maintain the company’s infrastructure during the period of non-action.

KVV Liepājas metalurgs board chairman Igor Talanov has confirmed that approximately 300 employees of the company may receive a notification regarding the termination of labour relations. With that, the company plans to pay more than EUR 800,000 to former employees.

The reduction of the number of employees will be carried out in accordance with legislation. Each employee will be informed of the decision to terminate job relations within 30 days in advance.

The company will comply with all requirements in regards to additional expenses related to aspects like unused vacation days, emphasizes Talanov. According to him, this decision has already been coordinated with the management of KVV Group.

BNN had previously reported that KVV Group has decided to freeze assets of KVV Liepājas metalurgs. «This decision was made, considering standing long-term negative factors that prevent the company’s function – crisis in the world metallurgy market, outstanding debts before creditors and the lack of interest from the state to support the industry,» – notes the company.

In recent months, shareholders of the company tried their best to restore production and establish a constructive dialogue with the government in spite of difficulties. Shareholders developed a restructuring plan for the company’s debts and waited for a reasonable response from the government in regards to the application of a reduced mandatory procurement component, as reported by the company.

«Our decisions were driven by the belief that shareholders and the state have a single goal – to preserve one of the largest tax payers in the country, develop the metallurgy sector and black metallurgy processing industry, as well as maintain jobs for hundreds of people,» – notes KVV Liepājas metalurgs board member Igor Talanov.

«Unfortunately, what we received was the distancing of state officials from problems in the company. The number of questions asked in the letter of the State Treasury and openly negative statements addressed to the proposed restructuring plan even before its review made it difficult for shareholders to understand when it may be possible to find an appropriate dialogue with the government,» – said the company’s representative.

According to him, KVV Group’s investments department had organized an independent audit at KVV Liepājas metalurgs in November 2015. Results of this audit showed that the company’s worth in 2015 was significantly lower than its procurement worth.

On 1 March, KVV Liepājas metalurgs submitted its business restructuring plan to the State Treasury. The government had requested this plan at the beginning of February. This plan details the repayment schedule of KVV Liepājas metalurgs’ debt of EUR 70 million.

On Friday, 19 February, Latvijas Gāze’cut off gas supply to KVV Liepājas metalurgs, as confirmed by LG. This decision was made following the company’s inability to pay off its debts for previous gas supplies.

Because the debt remained unpaid on Thursday, 18 February, KVV Liepājas metalurgs’ total debt kept increasing and continues to increase. In addition, KVV Liepājas metalurgs has not yet signed an agreement in regards to gradual repayment of the debt.

Members of the European Parliament have overwhelmingly supported what has been negotiated upon in the joint EU-UK progress report in Brexit talks and have recommended Brussels to move on to phase two negotiations on the future relations of the parties.

The silent period – the time for Christmas wishes – has begun. Snow covers Tukums, and the city slowly becomes white. Everything is quiet at Pils ielā. The phone rings, interrupting a quiet moment of watching snowflakes fall under the light of a lantern. «You’re here for us, aren’t you?» BNN goes to interview manager of Merci Cafe Anija Rabkeviča (23) and cafe’s founder Rinalds Pluģis (22). They tell about their experience of ‘surviving’ in Latvia.

Latvian Transport Ministry’s developed development plan for the transit industry, which was presented to Saeima’s National Economy Committee this week, states that raising competitiveness in the country requires subsidizing railway cargo transports.

Only political discussions were held proposal on the merge between Latvijas Mobilais Telefons and Lattelecom, and it is good that this matter has been taken off the agenda, said LMT President Juris Binde in an interview to Rīta Panorāma programme of LNT.

In the Estonian capital, the result of a legal dispute between water utility company Tallinna Vesi and the Estonian Competition Authority is that consumers are considered to be able to claim tens of millions of euros in compensation for overcharged water tariffs that have been in place for a number of years.

It was decided at a meeting of representatives of Latvian Association of Regions (LAR) that the party will not work with For Latvia’s Development. The party has also decided to start in 13th Saeima elections with its own list of candidates.

Italy has declared a state of emergency in its natural gas sector as a large explosion at a major natural gas hub in Austria killed one person, injured at least 18 and is prone to affect supplies in central Europe.

«To maintain GDP growth rate, the government should address priority matters like prevention of mandatory procurement component costs and electricity price rise to reduce costs for both businesses and residents. It is very important for employers to have the energy policy closely tied with production, because processing industry is the main driving force behind development of Latvia’s national economy,» says Latvian Employers’ Confederation (LEC) Director General Līga Meņģelsone.

The clients of Irish low-fare airline Ryanair will face inconvenience before Christmas as pilots and crew announced industrial action seeking to achieve union recognition and better conditions in the company, which is criticised by unions that it fails to offer pilots the same pay and conditions as its rivals.

Money laundering activities and grey economy are in decline in Latvia. However, corruption in the country’s public sector and smuggling activities remain serious problems for the national economy, as noted in the report on unaudited economy, corruption in the public sector and money laundering activities in Latvia published by Latvian Chamber for Commerce and Industry on Tuesday, 12 December.

Former Georgian President, now opposition activist in Ukraine, Mikheil Saakashvili, has been released from arrest by a judge, who denied a request from prosecutors to subject him to house arrest, but the case against him continues.

Latvia’s Justice Minister Dzintars Rasnačs has met with his Macedonian colleague Bilen Saliji, who arrived in Latvia to sign the Memorandum for Cooperation between Latvian Justice Ministry and Macedonian Justice Ministry.

The majority or 65% of Latvian respondents mentioned that whenever they make travel arrangements, they try to avoid regions in which there is a high probability of terrorist attacks or natural catastrophes, according to the latest Latvia Tours Travel Index.

The only offer extended to the now former state secretary of Latvia’s Interior Affairs Ministry Ilze Pētersone-Godmane to help her stay in state administration was the offer to become a candidate for the most of head of Riga Eastern Clinical University Hospital, as reported by Latvijas Avīze.

«Latvia continues supporting the solution that can be achieved through direct talks between Israel and Palestine with compliance of interests of both sides and making Jerusalem the capital of both countries. The European Union has to remain a reliable partner for Israel and Palestine. We have to continue the open dialogue with both sides and ensure EU’s unity in the Middle East peace process,» says Latvian Foreign Affairs Ministry’s parliamentary secretary Zanda Kalniņa-Lukaševica.

Countryside tourism businesses are threatened by unfair competition and growing bureaucracy, as emphasized by Latvian Countryside Tourism Association Lauku ceļotājs after discussing this season’s results at four regional business seminars.

As Estonia seeks to relocate part of government agencies out of the capital Tallinn, Estonian government ministers have been reminded that by the middle of January an action plan is required from them on the relocation of the central offices of 13 Estonian state institutions.

The volume of exports continued growing in November, reaching EUR 1,070,600 at the end of the month and setting a new record for exports for one month’s time. This export index is the highest in the history of statistical records in Latvia, Finance Ministry stated in its report, commenting on data from the Central Statistical Bureau.

Governments of European Union member states are aware of torture and abuse of refugees and migrants in Libya, Amnesty International has stated, insisting that trying to reduce migration, the EU is actively financially supporting a «system of abuse and exploitation» on the Mediterranean coast of Libya.